Interesting analysis ... wide variation in home affordability, by state

[UtahPete]

https://www.simplemost.com/salary-need-afford-home-every-state/

 

[Mad Mac]

As long as we don't have to cross the border(legally) into Calif., we're good! Thanks for posting this. Good food for thought. Mac:thumbup:

 

[johnsimion]

This, like almost every other survey of its ilk, doesn't mean much when you take a closer look. It's based on "average home prices," which isn't a very good basis for analysis. The median price would make a lot more sense since it only takes a few multi-million dollar houses to really jack up the average. For example, if you have one $1M house and nine $50K houses, the average becomes $145K. Also, what an "average home" entails may mean something entirely different in, say, West Virginia versus California, and the cost of an "average home" will also vary widely even within a state. For example, the cost of an "average home" in Los Angeles is going to be a LOT more than the cost of an "average home" in Barstow or Fresno. Also, in terms of affordability the study only shows how much income would be required -- it doesn't consider what the average (or median) household income actually is there.

 

[Mad Mac]

This, like almost every other survey of its ilk, doesn't mean much when you take a closer look. It's based on "average home prices," which isn't a very good basis for analysis. The median price would make a lot more sense since it only takes a few multi-million dollar houses to really jack up the average. For example, if you have one $1M house and nine $50K houses, the average becomes $145K. Also, what an "average home" entails may mean something entirely different in, say, West Virginia versus California, and the cost of an "average home" will also vary widely even within a state. For example, the cost of an "average home" in Los Angeles is going to be a LOT more than the cost of an "average home" in Barstow or Fresno. Also, in terms of affordability the study only shows how much income would be required -- it doesn't consider what the average (or median) household income actually is there.

:agree: with above statement, but all it takes is a couple of "below standard" homes in the same neighborhood to bring property values down. I think that is a pretty good summation on income needed. You still have to take into account you will have HOA's, insurance and other expenses to consider into the mix. So that being said, you would probably need to add 40% on top of that figure to have a comfortable way of life. IMHO anyway. Mac:dontknow:

 

[UtahPete]

Do you think there is any correlation between cost of living and desireability (i.e. market demand). Or, is there something else driving prices to such extremes?

 

[UtahPete]

https://www.simplemost.com/salary-need-afford-home-every-state/

I was surprised with Ohio and West Virginia. Wasn't expecting that.

 

[UtahPete]

This, like almost every other survey of its ilk, doesn't mean much when you take a closer look. It's based on "average home prices," which isn't a very good basis for analysis. The median price would make a lot more sense since it only takes a few multi-million dollar houses to really jack up the average. For example, if you have one $1M house and nine $50K houses, the average becomes $145K. Also, what an "average home" entails may mean something entirely different in, say, West Virginia versus California, and the cost of an "average home" will also vary widely even within a state. For example, the cost of an "average home" in Los Angeles is going to be a LOT more than the cost of an "average home" in Barstow or Fresno. Also, in terms of affordability the study only shows how much income would be required -- it doesn't consider what the average (or median) household income actually is there.

Well of course you're right. But I think you can draw some interesting inferences from it, particularly for people approaching retirement and looking to improve their standard of living while reducing their housing costs.

 

[Chupaca]

Now then...

If you could earn the big bucks Like in CT and live in CA you would have a really nice home. The house we have here cost three times what the same house would cost in FL. :yikes: all relative to what you can earn and the cost of living....

 

[UtahPete]

If you could earn the big bucks Like in CT and live in CA you would have a really nice home. The house we have here cost three times what the same house would cost in FL. :yikes: all relative to what you can earn and the cost of living....

Yup.

 

[Mad Mac]

Do you think there is any correlation between cost of living and desireability (i.e. market demand). Or, is there something else driving prices to such extremes?

I'm sure some relators will use that as a reason to add to the price tag, you know "price higher, sell a little lower" and call it a win-win for the seller and relator. It's what ever the market can sustain, I guess.:dontknow: The wife and I are retired, so we have incomes that are "fixed" now and we can't work "overtime" to pad the ol' bank account. We do have investments and Deferred comps. to supplement our incomes, but those will run out eventually. So we have to plan on our "floor" and hope we survive any major costs down the road, but still have enough to enjoy the rest of our years. You can second guess the future all you want, you just have to hope you planned it right. Time will tell. Mac

 

[ARtraveler]

Thanks for posting the list UP. I am finding that I can buy twice the size, just as nice or nicer, and twice the property size for HALF the price where I am planning on going, compared to Alaska.

 

[Holly]

Do you think there is any correlation between cost of living and desireability (i.e. market demand). Or, is there something else driving prices to such extremes?

Just think of the color blue and you will have your answer............. :thumbup:

 

[johnsimion]

Just think of the color blue and you will have your answer............. :thumbup:

That's right. It's just simple supply and demand. There is a lot of demand for housing in blue states, most of which are in desirable coastal areas and many of which have really nice climates where people want to live. And, land in coastal areas is always in short supply because there's no place to expand. Not that many people want to live in Mississippi versus Hawaii. Thanks for noticing.

 

[UtahPete]

I don't see blue in this map. I think we can most appreciate this if we refrain from viewing it in terms of partisan politics. nojoke

 

[Holly]

That's right. It's just simple supply and demand. There is a lot of demand for housing in blue states, most of which are in desirable coastal areas and many of which have really nice climates where people want to live. And, land in coastal areas is always in short supply because there's no place to expand. Not that many people want to live in Mississippi versus Hawaii. Thanks for noticing.

Can you explain why costal states NC, SC and GA are reasonably priced compared to NY ??????? The climate is much better in the south and besides NYC, the state of NY is a ghost state. People are fleeing in record numbers because the taxes are so high. Same thing is happening to the middle class in California.


Case dismissed !!!!!!! :roflblack:

 

[RinconRyder]

I was surprised with Ohio and West Virginia. Wasn't expecting that.

I'm not. Both Ohio and WVA are economically depressed areas where jobs are scarce and don't pay very much. That leads to lessened demand and the people who do buy can't afford more expensive homes. Western NY State is much the same with a lot of the big, old manufacturing companies having shut down.

 

[LeftCoast]

Can you explain why costal states NC, SC and GA are reasonably priced compared to NY ??????? The climate is much better in the south and besides NYC, the state of NY is a ghost state. People are fleeing in record numbers because the taxes are so high. Same thing is happening to the middle class in California.


Case dismissed !!!!!!! :roflblack:

At some point do you plan on leaving Holly?

 

[Holly]

At some point do you plan on leaving Holly?

Spyderlovers or NY ?????????????? :roflblack::roflblack:

 

[LeftCoast]

Spyderlovers or NY ?????????????? :roflblack::roflblack:

:bowdown: NY? Due to cost of living.

 

[SPECTACUALR SPIDERMAN]

does the lava in hi. bring the prices up or down?